The approved subdivision in Forestview Lane on Table Hill was put in the hands of VCAT after Hepburn Shire Council refused to approve the application on behalf of J and M Bateup last October.

It refused the application on four grounds: it would jeopardise the environmental qualities of the site and surrounding areas; it would have negative visual and physical impacts on the special neighbourhood character for the

precinct; the proposal fell short of satisfying ResCode standards, including community design, movement network, lot size and orientation, street design and street construction and; the proposal did not address or meet the design

standards required to provide a safe and serviceable road layout.

Community members were concerned about the effect the subdivision would have on the Three Lost Children's walking track.

Table Hill resident Lorraine Nicholls, who attended the VCAT hearings, said she was disappointed with the decision but was not surprised because it was zoned residential one.

The council's planning and economic development manager Judith Bedford said Forestview Lane would remain a road reserve.

She said the subdivision would not prevent access to the Lost Children's Walk because it doesn't restrict public access to the Forest View Lane road reserve.

Ms Nicholl's said the approved subdivision would set a precedent for other people on Table Hill that could compromise the walking track.

"I hope interest in the story of the three lost children will accumulate again," she said.

Next year will mark the 140th year since William Graham, seven, his brother Thomas, four, and Alfred Burman, five, were last seen at their homes in Connell's Gully.

About 700 people turned up to search for the boys and after 25 days it appeared the mystery would never be solved. The bodies of the boys were eventually found in the hollow of a tree.

"It's Australian history and we should push it," Ms Nicholls said.

"It's been 40 years since the children's grave was fixed up."

Ms Nicholls would like to hear from anyone to help organise celebrations for next year's 140th anniversary. Contact her on 5348 2163.